The Biz2Credit Small Business Lending Index for August reveals banks and non-bank lenders approved more loans in August. This includes big and small banks as well as institutional and alternative lenders. Only credit unions didn’t see any change, staying the same for the past two months with a 20.5% loan approval rate.
The percentage of loan approvals by non-bank lenders was up considerably in August. Institutional lenders approved 24.3% of loans to small businesses in August. This was up 0.4% from July and an impressive 2.2% from the same time last year.
Alternative lenders did even better by approving 25.2% of loans, which is up half a percentage point from July’s 24.7%. With less stringent requirements than traditional banks, non-bank and alternative lenders offer great options for small businesses owners with less than perfect credit scores.
Source: Biz2Credit Small Business Lending Index